AAR Corp. company mark
Industrials · NYSE/NASDAQ: AIR

AAR Corp.

Aerospace & Defense
Market Cap $5.40B
Verdict: Average

Quality Scores

Business Compounding
58/100
Compounder Quality
55/100
Management Credibility
65/100
Governance
75/100
Cash Flow Quality
48/100

AI Summary

AAR Corp. (AIR) serves as a critical independent provider of aviation services to the commercial and government markets globally. Over the last decade, the business has transitioned from a diverse conglomerate to a focused pure-play aftermarket engine and airframe services provider. While the company demonstrated significant resilience and earnings growth between 2021 and 2023, the 2024 and 2025 fiscal data shows a marked contraction in net profitability. The company has aggressively expanded its asset base from $1.44B in 2016 to $2.84B in 2025, largely driven by strategic acquisitions to…

Top Opportunities

  • Consistent positive Operating Cash Flow in most fiscal cycles
  • Successful recovery and peak earnings achieved in 2023
  • Large scale operation with assets now exceeding $2.8B

Top Risks

  • Severe net income contraction in 2025 vs 2023 peak
  • Significant volatility in annual earnings performance
  • Asset-heavy expansion has yet to yield incremental returns

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